M&A activity in MENA region sees 30% increase with deal value reaching $58.7 billion in first half of the year.

Mergers and acquisitions (M&A) activities in the Middle East and North Africa (MENA) region have shown a significant surge in the first half of 2025, with a total deal value of $58.7 billion. According to research conducted by EY-Parthenon, there were 425 successful M&A transactions during this period, marking a 31% increase from the same period in 2024. The total deal value also increased by 19% as compared to the previous year.

The growth in the MENA M&A market was attributed to various factors, including regulatory reforms, policy changes, an improved macroeconomic outlook, government strategies for diversification, and growth in high-potential sectors. Brad Watson, the Leader for MENA at EY-Parthenon, emphasized the market’s strength, dynamism, and resilience in achieving positive performance during the first half of the year.

The United Arab Emirates (UAE) emerged as a key player in the M&A scene, accounting for nearly half of the total transactions in the MENA region. With $25.4 billion in M&A deals, the UAE represented around 43% of the total deal value. Watson mentioned that the UAE continues to attract global capital due to its stable regulatory framework, economic diversification focus, and partnerships with Europe, Asia, and North America.

Saudi Arabia also played a significant role in the MENA M&A market, recording $2.5 billion worth of deals, which accounted for approximately 4.3% of the total deal value. Cross-border transactions reached a five-year high in H1 2025, with chemicals and technology sectors leading the way by contributing 67% of the total deal value. Major transactions such as Borealis and OMV’s acquisition of Borouge further exemplified the growth in cross-border activity.

Domestically, Group 42’s acquisition of a stake in Khazna Data Center was the largest transaction, with domestic deals representing 45% of total deal volume and 22% of total value. Government-related entities and sovereign wealth funds played a crucial role in the M&A landscape, contributing $21 billion in deal value across 54 transactions.

In terms of international deals, MENA players engaged in outbound activity with 126 deals valued at $24.4 billion in H1 2025. Outbound deals were led by the UAE and KSA, with notable acquisitions such as ADNOC and OMV’s purchase of Canada’s Nova Chemicals and Saudi Aramco’s acquisition of Primax in South America.

Looking ahead, Anil Menon, MENA Head of M&A and Equity Capital Markets at EY-Parthenon, expressed optimism about the region’s dealmaking prospects in the coming year. He highlighted stable oil prices, infrastructure development, and a strategic focus on technology, chemicals, and industrials as factors that will continue to drive M&A activity in the MENA region. Increased competition for high-quality assets aligned with national transformation agendas is expected as investors seek strategic value beyond financial returns.